Mergers & acquisitions (M&A) activity in the pharmaceutical sector recorded a downturn, in volume terms, across the globe. Asia-Pacific witnessed the highest fall in volume terms, recording no transactions in September 2013, a significant decrease of 100 per cent over the previous six month’s average of 3.5 transactions.
In one of the key deals announced during the month, Chile-based CFR Pharmaceuticals agreed to acquire Adcock Ingram, a South Africa-based pharma company, for approximately $1.2 billion. This transaction is consistent with CFR’s strategy of strengthening its position as one of the emerging market leaders in pharma. The combination of CFR and Adcock Ingram is anticipated to generate significant revenue and cost synergies, with an estimated net present value of at least $440 million.
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M&A (including private equity) trend analysis
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| Source: MedTrack |
In another key deal, Japan-based Otsuka Pharmaceutical agreed to acquire Astex Pharmaceuticals, a US-based drug discovery company, focused on oncology, for approximately $866 million. The acquisition will strengthen Otsuka’s cancer portfolio and also its drug discovery research in the central nervous system therapy area, through Astex’s fragment-based drug design technology.
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Top M&A deals (Sept 2013)
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Rank
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Date
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Target
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Acquirer
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Deal value ($m)
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1
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09/11/13 | Adcock Ingram Limited (ZA) | CFR Pharmaceuticals S.A. (CL) | 1,262.31 |
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2
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09/05/13 | Astex Pharmaceuticals, Inc. (US) | Otsuka Pharmaceutical Co., Ltd. (JP) | 866.00 |
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3
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09/16/13 | Cornerstone Therapeutics, Inc. (US) | Chiesi Farmaceutici SpA (IT) | 255.00 |
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4
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09/09/13 | Laboratorios Casen Fleet S.L. (ES) | Recordati S.p.A. (IT) | 122.60 |
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5
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09/20/13 | Verenium Corporation (US) | BASF Corporation (US) | 62.00 |
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6
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09/10/13 | IGDRASOL (US) | Sorrento Therapeutics, Inc. (US) | 28.20 |
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7
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09/12/13 | Molecular Profiles (GB) | Columbia Laboratories, Inc. (US) | 25.00 |
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8
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09/ 27/13 | Inotek Pharmaceuticals Corporation (KR) | Devon Park Bioventures; Rho Ventures; Care Capital LLC; MedImmune Ventures, Inc. ; Pitango Venture Capital | 21.00 |
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9
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09/12/13 | Egalet a/s (KR) | Index Ventures ; Undisclosed Investors | 10.00 |
| Source: MedTrack | ||||
M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of the previous six months (March – August 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 16 M&A transactions in September 2013, against the previous six months’ average of 34 transactions. In value terms, the sector recorded deals worth $2.7 billion, against the previous six months’ average of $8.9 billion.
The Indian pharma sector witnessed no deals during September 2013, against the average of 0.1 deals over the previous six months.
| Venture financing trend analysis |
| Source: MedTrack |
Venture funding
Companies in the pharma sector raised $175.9 million during September 2013, against the previous six months’ average of $207.5 million. In terms of volume, the sector recorded 14 venture funded deals, when compared to the previous six months’ average of 19.3 transactions.
| Top venture financing deals (Sept 2013) | ||||
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Rank
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Date
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Target
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Investors
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Deal value ($m)
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1
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Sep 4, 2013 | Otonomy, Inc. (US) | OrbiMed Advisors, LLC; Aperture Venture Partners, LLC; Osage University Partners; Avalon Ventures; Domain Associates, L.L.C.; Novo Ventures; RiverVest Venture Partners; TPG Biotech |
45.90
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2
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Sep 11, 2013 | Civitas Therapeutics, Inc. (US) | Bay City Capital LLC; RA Capital Management, LLC; Alkermes plc; Canaan Partners; Fountain Healthcare Partners; Longitude Capital Management Co., LLC; Undisclosed Investors |
38.00
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3
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Sep 4, 2013 | iPierian, Inc. (US) | SR One; Kleiner Perkins Caufield & Byers; MPM Capital; Google Ventures; Mitsubishi UFJ Capital Co., Ltd.; ATEL Ventures, Inc.; Highland Capital Partners; FinTech Global Capital, LLC |
30.00
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4
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Sep 17, 2013 | Fermentalg (FR) | Ecotechnologies fund; Viveris Management; IRDI; Emertec; Demeter Partners; ACE Management; Picoty Algo Carburant; Sofiproteol |
16.03
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5
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Sep 3, 2013 | Tragara Pharmaceuticals, Inc. (US) | Domain Associates, L.L.C.; Mitsubishi International Corporation; Morgenthaler Ventures; ProQuest Investments; RusnanoMedInvest |
12.00
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| Source: MedTrack | ||||
Notes and Definitions
Medtrack is a comprehensive, fully integrated, global biomedical database providing information on companies, products, patents, deals, venture financing, and epidemiology. It is a live database, constantly updated with news, milestones, trial information, etc. Medtrack’s unmatched coverage is supported by a user-friendly, highly dynamic set of decision support tools and analytics. In-house analysts and researchers add key insights and conclusions to provide you with the primary and secondary information you need. Key uses of the database include competitive intelligence, target identification, screen potential licensing and investment opportunities, patent assessments, product due diligence, royalty valuations, and developmental benchmarking.
Definitions:
1. Deal value trend is based on transactions where associate values have been disclosed.
2. Trend analysis excludes rumored and terminated deals.
3. Value and volume analysis excludes private equity exits.
For more information, visit us at www.medtrack.com